FE Editorial : A very Indian question

: The BJP, as befits a political party hosting a public theatre of its troubles and existential doubts, is getting plenty of advice. Almost all advice, even it seems some from RSS bigwigs, concludes by saying the party must become centre-right minus Hindu right. But there seems to have been little discussion on what can constitute a viable centre-right agenda in today’s India, especially in political economic terms. The traditional Western notion—a centre-right party shows more faith in markets, prefers small government, dislikes welfarism and is comfortable with business—will need modifications, given political realities. For one, the government’s minimal role in a country like India is considerably bigger than that in advanced industrial economies. Second, the articulation of that role is being done reasonably effectively by the Congress, leaving the BJP not enough room for product differentiation. Theoretically, the BJP can critique wasteful government. But India’s political economy will reward suppliers of somewhat effective government more than it will punish polished critiques of big government. The same problem applies in taking the classical centre-right position on welfarism in India. Indeed, and to give credit where it’s due, the BJP sort of understands this, which is why its election manifesto differed from the Congress’s only in details, not in broad political economic approach.

As for the traditional centre-right attributes of exhibiting more faith in markets and being more comfortable with business, even the Western notion needs clarification. Western centre-right parties have frequently sacrificed market principles for the sake of what they have seen as conservative or nationalist principles. ‘The market’ is not as sharp a marker as it is thought to be. Many centre left parties have shown their ability to harness market energies. Indeed, minus the Left, the Congress has the chance to appear to be open to a few market solutions. And it is unlikely the BJP would have embraced market solutions in dramatically more radical fashion. Remember the BJP subverted free pricing of fuel after the policy was cleared, it also raised PF rates and it has shown no support for ideas like vouchers for primary education. Also, the party’s better-functioning state governments owe their mandates to effective government expenditure. That leaves comfort with business, where examples like Narendra Modi’s ability to attract capital and praise from industry will be considered relevant. But there’s no semi-reasonable party in India today which doesn’t want to attract capital and Gujarat’s ability to...